For the Quarter Ending September 2024
North America
In Q3 2024, the Phenolic Resin market in North America experienced a mixed trend. Compared to the same quarter in 2023, prices in the USA saw a sharp decline of 65.2%, driven by weak demand and reduced cost support from key feedstocks like phenol and formaldehyde, which contributed to lower production costs. However, in contrast to this yearly decline, there was a modest recovery from Q2 2024, with prices rising by 1.8%, signaling some level of market stabilization. Despite this, overall demand remained weak, especially from downstream industries such as paints, coatings, and adhesives.
Market participants noted stagnant consumer activity, both domestically and internationally, due to high inventory levels and limited inquiries from core sectors. The ongoing market oversupply, coupled with sluggish procurement activities, continued to exert downward pressure on phenolic resin prices. The market’s momentum remained weak, with insufficient demand-side support to drive a significant recovery.
In summary, while Q3 offered some signs of market stabilization, the Phenolic Resin market in North America remains challenged by oversupply and weak demand. In USA, prices settled at USD 1613/MT FOB Louisiana, reflecting the ongoing difficulties in balancing supply and demand.
APAC
In Q3 2024, the Phenolic resin market displayed a mixed trend. Compared to the same quarter in 2023, prices saw a 16.5% decline in China, reflecting weak demand and reduced cost support from feedstocks, which lowered production cost. However, compared to Q2 2024, there was a modest recovery, with prices increasing by 4.2%, indicating some stabilization in the market. Despite this, overall demand remained sluggish, particularly from the paints, coatings, adhesives and other downstream due to slowdown in the construction activities, which impacted Phenolic resin consumption. Factors influencing these price declines included weak demand from downstream sectors and high inventory levels, exerting downward pressure on prices. Seasonal factors, like heavy rainfall impacting construction activities, further dampened demand, contributing to the negative sentiment in the market. China, experiencing the most significant price changes, saw a significant shift between the first and second half of the quarter, emphasizing the deteriorating pricing environment. In conclusion, the latest quarter-ending price for phenolic resin in the China stood at USD 1359/MT, FOB Qingdao, signaling a persistently decreasing pricing environment. The overall trends underscored a negative trajectory, influenced by a combination of factors that weighed heavily on market dynamics.
Europe
In Q3 2024, the Phenolic Resin market in Europe presented a mixed trend. Compared to the same quarter in 2023, prices saw a steep 62.8% decline in Belgium, driven by weak demand and reduced cost support from feedstocks phenol and formaldehyde, which led to lower production costs. However, compared to Q2 2024, prices stabilized. Despite this stabilization, overall demand remained sluggish, particularly from downstream industries like paints, coatings, and adhesives. The slowdown in construction and automotive sectors significantly impacted Phenolic Resin consumption. Market participants reported stagnant consumer activity, both domestically and internationally, due to ample inventories and limited inquiries from key sectors. The negative market sentiment continued, with producers facing downward pressure on the phenolic resin prices amid oversupply and weak procurement. In summary, while Q3 offered some signs of market stabilization, the Phenolic Resin market in Europe remains challenged by oversupply and weak demand. In Belgium, prices settled at USD 1853/MT FOB Antwerp, reflecting the ongoing difficulties in balancing supply and demand.
For the Quarter Ending June 2024
North America
During Q2 2024, the Phenolic Resin market in North America experienced an upward price trend driven by several factors. The quarter was marked by significant volatility due to supply chain disruptions, increased raw material costs, and fluctuating demand from key industries such as automotive and construction. Prolonged maintenance activities at production facilities and logistical challenges tightened availability, pushing prices higher. Additionally, raw material costs, particularly for phenol and formaldehyde, saw noticeable increases due to global market fluctuations and regional supply constraints, further elevating production expenses for manufacturers.
In the USA, this quarter exhibited the most significant price dynamics. The overall trend reflected a stable yet slightly increasing pricing environment, supported by steady demand from downstream industries. Construction activities peaked during this period, sustaining the demand for Phenolic Resins. Price changes correlated closely with these seasonal shifts and market conditions, leading to a consistent, albeit modest, upward price movement.
Compared to the same quarter last year, prices plummeted by 68%, indicating a substantial year-over-year decrease. However, from the previous quarter in 2024, prices saw a milder decline of 18%, showcasing a more stable pricing environment. Between the first and second halves of the quarter, a minor 1% increase was observed, indicative of gradual price stabilization. Concluding Q2 2024, the latest quarter-ending price for Novolac Phenolic Resin FOB Louisiana in the USA stood at USD 1611/MT.
APAC
During Q2 2024, the Phenolic Resin market in the APAC region witnessed a notable price upsurge primarily driven by several critical factors. Increased raw material costs, particularly for phenol and formaldehyde, played a significant role in escalating production expenses, compelling manufacturers to adjust prices upward. Additionally, a decline in inventory levels and limited import availability exacerbated the supply constraints, further inflating prices. The bullish market sentiment was also fueled by robust demand from downstream industries such as construction, automotive, and coatings, which maintained strong procurement rates amidst steady manufacturing activities. Focusing exclusively on South Korea, the country experienced the most significant price changes, reflecting an overall upward trend. Seasonal demand fluctuations, particularly higher consumption during peak manufacturing periods, significantly influenced the price trajectory. Despite a price decrease from the same quarter last year, an incremental 3% rise from the previous quarter in 2024 was recorded, underscoring a positive pricing environment for this period. The price comparison between the first and second halves of the quarter highlighted a 4% increase, showcasing continued momentum in price growth. As the quarter concluded, the price of Phenolic Resin (Powder) FOB Busan in South Korea stood at USD 1441/MT.
Europe
The second quarter of 2024 saw an increase in phenolic resin prices across Europe, driven by several crucial factors. Heightened demand from key downstream sectors such as automotive and construction, coupled with disruptions in the supply chain, led to tightened availability and upward price pressure. Additionally, consistent rises in the prices of key raw materials, including phenol and formaldehyde, amplified production costs for manufacturers, necessitating price increases to maintain profitability. Focusing on Germany, this market witnessed the most significant price changes. The overall trends indicated a persistent upward trajectory in phenolic resin prices, influenced by robust demand from the construction and automotive industries despite seasonal fluctuations. The correlation between increasing raw material costs and final product pricing was evident, with a notable percentage change from the same quarter last year at -65%, reflecting a recovery phase. The percentage change from the previous quarter in 2024 was recorded at -18%, indicating an upward adjustment in prices as the market stabilized. A price comparison between the first and second half of the quarter showed a slight increase of 1%, reinforcing the steady pricing environment. The latest quarter-ending price for Novolac Phenolic Resin in Germany was USD 1841/MT FOB Hamburg. This consistent increase in prices reflects a positive pricing environment, as manufacturers responded to supply chain constraints and rising input costs, ensuring stable profitability and market equilibrium.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American region witnessed a significant decrease in prices for Phenolic Resin. Several factors contributed to this downward trend. Weak demand from downstream industries, such as molding powder, circuit boards, laboratory counterparts, coating, and adhesives manufacturing, played a crucial role in driving prices lower. The overall market transactions were low as consumers refrained from accumulating excess supplies.
According to industry experts, product inventories were at elevated levels, leading to price declines due to poor consumption rates. Additionally, increased competition from other resin markets has put pressure on domestic manufacturers of the product, resulting in shrinking profit margins. On the cost side, the support from the upstream Phenol market declined while that from the Naphtha market was stable. Also, due to the Easter holiday, the market was operating at a slower pace than usual.
Furthermore, there was a notable price difference between the first and second half of the quarter, with prices dropping by 29%. This suggests that the pricing environment remained negative throughout the quarter. As Q1 2024 came to a close, the prices of Novolac Phenolic Resin FOB Louisiana settled at USD 1570 per tonne in the USA. This reflects the continued bearish sentiment in the market.
APAC
During the first quarter of 2024, the pricing of Phenolic Resin in the APAC region experienced stability after a decline in the previous quarter. This stability was influenced by various factors, including improved conditions in the construction sector and increased infrastructure development, leading to a stronger demand for the product. Additionally, the global economy showed signs of recovery, with reduced debt issues and improved consumer confidence, resulting in increased market transactions.
China, being a significant player in the Phenolic Resin market, witnessed more favorable market conditions during this period. The supply of Phenolic Resin remained steady, and there was a notable increase in demand from downstream industries such as automotive and construction. Both domestic and international downstream consumers showed a heightened interest in the product, leading to promising inquiries. Fortunately, no plant shutdowns were reported by market participants, ensuring a consistent supply.
The quarter-on-quarter change in prices is also negative at -5%. However, there has been no significant price difference between the first and second half of the quarter, indicating stability in the pricing environment. The quarter-ending price for Phenolic Resin (Powder) in China is recorded at USD 1305/MT FOB Qingdao, reflecting the overall decreasing sentiment in the market.
Europe
The pricing environment for Phenolic Resin in the Europe region during Q1 2024 has been negative, with prices experiencing a significant decline. The market has been influenced by ongoing subdued demand from downstream industries such as adhesive, coatings, molding, and insulation manufacturing. Consumer inquiries have consistently shown weakness, exacerbating the negative sentiment in the market.
Several factors have contributed to the decline in prices. The cost pressure from upstream Phenol and Naphtha markets has continued, with prices dropping in the European region. Additionally, the impact of crude oil prices has affected the prices of Phenolic resin. Rising geopolitical tensions in the Middle East, a crucial region for global energy production, have led to an increase in crude oil prices. Concerns over supply disruptions and conflicts have heightened worries about global oil supply, further boosting crude oil prices.
Overall, businesses have been operating at a slower pace, and market transactions have been minimal. The supply of Phenolic Resin has been moderate, with adequate inventory to meet current demand. However, demand from downstream sectors has remained weak, both domestically and in overseas markets.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, Phenolic Resin pricing in North America was bearish due to weak demand from downstream industries such as adhesives and coatings. Consumer inquiries were milder as sufficient material availability was reported in the domestic market, leading to a decrease in prices. The USA experienced the most significant changes in prices, with Novolac Phenolic Resin FOB Louisiana settling at USD 3100/MT.
The trend for Phenolic Resin in the USA during this period was bearish, with a -45% percentage change from the same quarter in the previous year and a -33% percentage change from the previous quarter. The price percentage comparison of the first and second half of the quarter in the USA was -17%. Weak cost support from upstream Phenol and Formaldehyde was the primary reason for the decrease in prices throughout the quarter.
Additionally, high inventories in the market, procurement slowdown, and consumer destocking of inventories also contributed to the bearish market. In conclusion, North American phenolic Resin pricing during Q4 2023 was bearish, with the USA experiencing the most significant changes in prices.
APAC
The APAC region's phenolic resin market witnessed a bearish trend in the fourth quarter of 2023 (Q4), with lower demand and higher supply. The downstream demand from the automotive and construction sectors remained weak, leading to sluggish inquiries from downstream consumers. Built-up inventories of the product were anticipated in the domestic market, affecting market sentiments. The demand from downstream industries such as molding powder, circuit boards, laboratory counterparts, coatings, and adhesives manufacturing remained weak amid poor consumption rates. No major supply chain constraints or port congestions were observed during the quarter. The overall business transactions were average, and market activities remained limited during the mid-autumn holidays. The percentage change in the price from last year's same quarter was -37%, while the percentage change from the current to the previous quarter was -4%. The price percentage comparison between the first and second half of the quarter in China was -3%. The quarter-ending prices of Phenolic Resin (Powder)-FOB Qingdao in China were USD 1326/MT.
Europe
The European market for Phenolic Resin in the fourth quarter of 2023 was characterized by a bearish trend, with prices declining across the region. The supply of Phenolic Resin remained at lower levels due to weaker downstream demand and sluggish import rates. Manufacturing activities were slow, resulting in poor domestic consumption and low overseas demand. One of the primary reasons for the bearish market was the slowdown in manufacturing activities, which limited the supply of Phenolic Resin. Additionally, the cost support from upstream markets dropped, further affecting production. In Belgium, the price of Phenolic Resin showed a significant decrease of 6.4% compared to the previous quarter. Looking at the year-on-year comparison, the price of Phenolic Resin in Belgium decreased by 31% in the fourth quarter of 2023 compared to the same quarter in the previous year. This significant decline indicates a downward trend in prices over time. Overall, the European market for Phenolic Resin in the fourth quarter of 2023 experienced a bearish trend, with prices declining across the region. Belgium saw a significant decrease in prices, reflecting the overall market conditions. The latest price of Novolac Phenolic Resin FOB Antwerp in Belgium for the fourth quarter of 2023 was USD 3420/MT.
